Does a strong U.S. dollar hurt American companies that do business overseas?

  • strong dollar weak overseas companies

    Dollar has had its roller-coaster ride in the last few years. Well previously investors would believe that strong dollar would mean strong return but not for the multinational companies. These companies would have to suffer most if the dollar grows strong as the international customer would have more purchasing power.

  • It Is Basic Economics

    Simple economic theory shows that when a country's dollar increases in value, exports have a harder time. This will lead to some lagging for any company that does business outside of its own country, while imports will do better. In this case, the stronger US dollar will have some negative effect on companies overseas, but will allow other countries to benefit and hopefully provide an offset.

  • well, yes it does

    There are two sides to the issue. A strong U.S. dollar is good for us, but bad for overseas business because it makes our prices less competitive. But if we have a weak U.S. dollar than our economy is not going to be doing any good so there must be a balance.

  • Strong U.S. Dollar is strength overall

    A strong U.S. dollar does not hurt anyone. Given the amount of debt the nation is in and our propensity for helping people (even when said help is not asked for), a strong U.S. dollar is a good thing for all American companies, even those that do business overseas. A strong dollar means money is moving.

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